Remington's bankruptcy filing expected soon
Remington Outdoor's plans to file for bankruptcy should be complete by Sunday.
An agreement posted on Remington's website Monday indicates the company's Chapter 11 filing could come as soon as March 18.
Remington said last month that it had reached a deal with lenders that would grant them ownership of the 200-year-old company. Remington would continue operating and making guns while in bankruptcy.
Buried under nearly $1 billion in debt, Remington announced a debt restructuring plan in a statement on Feb. 12, two days before the mass shooting in Parkland, Florida. Since then, some retailers reacted: Dick's Sporting Goods (DKS) announced a ban on the sale of assault rifles and Walmart (WMT) to lifted the minimum age to buy guns to 21.
Gun sales overall have slowed since the election of President Donald Trump, the thinking being that gun control regulations would be less likely. Gun sales had risen during President Obama's presidency and in anticipation of a win by Hillary Clinton.
American Outdoor Brands' (AOBC), up until 2016 known as Smith & Wesson, saw its profits slide 90 percent in 2017, Mr. Trump's first year in office. Sturm Ruger (RGR) in October reported a 35 percent decline in quarterly profits.
Speaking with analysts last summer, Sturm Ruger CEO Christopher Killoy touched on how gun sales had risen during the 2016 presidential race, only to fall after Mr. Trump was elected.
"The industry experienced strong demand that lasted almost the entirety of 2016," Killoy said. After seeing a lift in sales "due to some political events going on and the election" in 2016, Sturm Ruger is now seeing customers "take a little bit of a breather," Killoy added.